Employee attrition has become a common issue for a large number of organizations, these days. And, in order to effectively deal with this issue, HR department keeps on trying every trick in the book to retain their valued employees. One of the most effective ways to do so is to have group insurance for the staff.
Group insurance policy, typically, means life insurance product especially conceptualized to cover a fairly large group of people under a single contract. In a group insurance contract, the policy owner is the employer or an organization, and the policy covers employees or members of that particular organization.
You’ll be surprised to know that the share of group insurance policies in effect in the year 2013 was 41%. These policies were issued through groups, including workplaces, labor associations, or other homogenous groups.
Despite the fact that group insurance policies form a major part of the insurance market, a large number of people do not really understand and integrate their sponsored group benefits into their overall financial situation. Resultantly, they end up spending a lot out of their own pocket for a supplemental medical insurance policy.
Remember, a group insurance policy provides an adequate coverage against medical emergencies for you and your loved ones, irrespective of your age, gender, profession, lifestyle, and social background.
Although there is not much difference between group life insurance policies and individual life insurance policies, the benefits offered by group life insurance policies are relatively wider and usually unknown to many. And, that’s why we present to you some relatively unknown benefits of group insurance policies.
Wrapping it Up!
While zeroing in on a group insurance plan, it is important to note that though there are numerous benefits offered by the policy, it has some limitations too. Benefits of a group insurance plan; be it a life cover, saving or superannuation, is terminated once a member leaves the group or organization.
Secondly, the sum assured is usually limited, as a group term life insurance plan is purely an employee benefit plan. Consequently, the coverage offered by these plans may not be enough to fully secure your family on retirement, sudden illness, or even death.
Having a group insurance plan as a supplementary is beneficial, cost-effective, and hassle-free, but it is wise to opt for a separate life insurance plan. With a group insurance plan in your pocket, you can be armed to fight the emergencies even if you do not have an individual life insurance plan.